Figure 14.4 shows that every year, many more firms increase dividends than cut them. Comment on why
Question:
Figure 14.4 shows that every year, many more firms increase dividends than cut them. Comment on why you think that is true.
Transcribed Image Text:
FIGURE 14.4 U.S. Publicly Listed Companies Maintaining, Increasing, or Decreasing Dividends 1959 to 2019 Among firms that pay dividends, the most common practice is to increase dividends yearly, with dividend cuts being relatively rate. Public U.S. Dividend-Paying Firms (%) 90 80 70 60 50 40 30 20 10 Firms increasing dividends h Firms maintaining dividends Firms decreasing dividends K 04 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2019 Your
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Answered By
Chiranjib Thakur
I have no tutoring experience yet, but I can share my skills and knowledge gained from my education and work experiences. I have been a CPA since 2012 with 6 years of work experience in internal auditing and 4 years of work experience in accounting at the supervisory level.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
Question Posted:
Students also viewed these Business questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
Read and answer the question below. EMBRACE DEMOGRAPHICS AND SOCIETAL CHANGES Using Differences to Drive Value Force 7: Demographics and Societal Changes. One of the most important forces that is...
-
Elaborate the basic functioning of a hydraulic lift. Include the terms pressure, density, and buoyant force in the explanation. Give one example of a hydraulic lift you have encountered.
-
Larson and Amos have decided to form a partnership. They have agreed that Larson is to invest $150,000 and that Amos is to invest $50,000. Larson is to devote one-half time to the business, and Amos...
-
Bight Corporation issued $400,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...
-
North Shore Childcare Ltd plans to open a day care centre at the beginning of next year. A building has been leased and the company has estimated that the following annual costs will be required....
-
Lor Companys single product sells at a price of $108 per unit. Cost data for its single product follows. Compute this companys break-even volume in units. Direct materials . . . . . . . . . . . . . ....
-
Blossom Manufacturing purchases $73,100 of raw materials on account, and it incurs $81,200 of direct labour costs. Supporting records show that (a) the assembly department used $63,300 of direct...
-
Arrange these events in chronological order: ex-dividend date, declaration date, date of record, payment date.
-
Is it easy for managers to dramatically pump up stock prices by repurchasing shares? In what ways might managers personal interests prompt them to buy back shares?
-
A dilemma in the literature is the measurement of culture and how cultural value affects outcomes. What are the potential issues on the types of measurements of culture?
-
Human wants are greater than the resources that are available to satisfy them." Discuss the above statement.
-
Consider an individual who immigrates to Canada and deposits $5,000 into the Canadian banking system. Suppose that all commercial banks have a target reserve ratio of 5 percent and that individuals...
-
An investment of $10,000 has a geometric mean return of 0.1475 after 4 years. What is the value of the investment at the end of year four?
-
An organisation acquired new computer systems in 2020 for 40,00,000. The computer systems will have a scrap value of 12,00,000 at the end of 8 years, which is their expected lifetime. What will be...
-
9. As a young corporate financial analyst for Mobile Corporation, you observe that Moody's has assigned Mobile an equity rating of AA. In addition, Mobile's common equity is trading at $95, is...
-
Cost and production data for Gigante Products Company follow: Standard Cost Sheet (Normal capacity'1,000 units) During the month, 850 units were sold at $60 each. Note: Materials, labor, and overhead...
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
Consider the following information: a. Suppose the rate of return on 3-month Treasury bills is 4%, and the 3-month expected inflation rate is 2%. What is the real return? b. Based on your result in...
-
Elliot Enterprises bonds currently sell for $1,150, have an 11% coupon interest rate and a $1,000 par value, pay interest annually, and have 18 years to maturity. a. Calculate the bonds current...
-
A firm wishing to evaluate interest rate behavior has gathered data on the nominal rate of interest and on inflationary expectations for five U.S. Treasury securities, each having a different...
-
Shahid Pakistan Limited (SPL) is engaged in the production of three products: J, K and L. Following is the extract from its latest annual management accounts: Description J Products K Total L Units...
-
John Company produces hats and sells them for $100 each. His cost to produce the hats are: DM 20 per unit DL 30 per unit VMOH 10 per unit FMOH 40,000 Selling expenses are $5 per unit and are all...
-
John Company produces hats and sells them for $100 each. His cost to produce the hats are: DM 20 per unit DL 30 per unit VMOH 10 per unit FMOH 40,000 Selling expenses are $5 per unit and are all...
Study smarter with the SolutionInn App